Experts familiar with the U.S funding of humanitarian non-governmental organizations (NGOs) warned that despite the U.S. efforts to counter the Houthi rebels Red Sea threat, and sanctioning the group as a Specially Designated Global Terrorist entity, it continues to bankroll NGOs and United Nations agencies, that are largely exempt from the sanctions, even if it is operating in Houthi control areas of Yemen.
The experts noticed that this contradictory policy allows the terror group to divert aid and benefit from these funds, exacerbating an already major security crisis.
The experts cited a published guidelines by the U.S. Treasury Department’s Office of Foreign Asset Control for navigating the sanctions, that includes major loopholes to undercut the sanctions’ purpose.
According to the document the NGOs are able to make payments to Houthi officials and institutions — as well as institutions controlled by Houthi officials — as long as these payments are for taxes, administrative fees, permits, public services or licenses.
This is done ostensibly in the context of humanitarian assistance. With the Houthis controlling ports and other infrastructure and jurisdictions in Yemen, this means that NGOs can openly pass money to the terrorist group, as long as it is labeled as a tax or fee.
NGOs, according to the document, are also permitted to make payments to agencies and organizations led by Houthi officials; fund development projects that could be used by government institutions under direct Houthi control; and disburse “payments (e.g., cash incentives, per diems, and expenses) directly to healthcare workers, teachers, and other staff who may be associated with or formally employed by purported or actual administrative agencies or governing institutions controlled by Ansarallah.”
The experts concluded that these broad exemptions effectively render the sanctions regime worthless and embolden the Houthis.
They added “Governments that want to responsibly deliver humanitarian aid in conflict zones must learn lessons from Yemen. This includes stricter enforcement of laws forbidding provision of material support to terrorist organizations, particularly when these groups are in active combat against U.S. forces, as with the Houthis.